Frost & Sullivan expects vehicle sales to reach 612,000

AddThis

Frost & Sullivan expects vehicle sales to reach 612,000

Frost & Sullivan expects vehicle sales to reach 612,000

Thursday, January 5, 2012
  • muk
Kavan projects the sales of hybrid vehicles to increase substantially in 2012.

KUALA LUMPUR: Malaysia's total industry volume (TIV) is expected to increase by 1.2 per cent to 612,000 units this year from an estimated 605,000 units last year despite uncertain global economic outlook, limited new mass market models and concerns on loan approval.


Frost & Sullivan partner & head of the automotive & transportation practice, Asia-Pacific, Kavan Mukhtyar, said TIV in 2012 would be driven by the C-segment (mid-sized sedans) and D-segment (premium and large sedans) while hybrid would continue on a high-growth path amid the extended duty exemption.


"The sales of hybrid vehicles will increase to 60.9 per cent this year as the price gap between the car and petrol vehicles is narrowing," he told a media briefing Thursday on Malaysia's 2012 car industry.


Kavan said the B-segment (small and compact cars) will grow by 23 per cent year-on-year to 35,000 units following the launch of new key models such as Toyota Camry, Kia Optima, Volvo V60 and BMW M5.


The growth of the B- and A- segments (sub-compact) is expected to be less aggressive this year due to stringent loans and credit controls which would affect the purchase of entry-level vehicles.


"The sales in B-segment will experience a slight growth of 2.2 per cent year-on-year to 98,800 units fuelled by the Perodua Myvi, Suzuki and Ford Fiesta.


"But the A-segment will continue to shrink as there are only limited models offered and the increasing trend of first-time buyers opting straight for B- and C-segment models," he said.


Kavan said sales in the C-segment were expected to increase by 3.8 per cent year-on-year to 238,300 units in 2012 with the new launches by Proton, Hyundai and Honda.


On multi-purpose vehicles, Kavan said, demand would slip to 10.1 per cent to 83,100 units, while sports utility vehicles were likely to grow 11 per cent to 26,900 units.